1.  A sum of money is borrowed and paid back in two annual instalments of ₹ 882 each allowing 5% compound interest. The sum borrowed was:
A. ₹ 1620
B. ₹ 1640
C. ₹ 1680
D. ₹ 1700

Answer: Option B

Explanation:

Principal
= (P.W. of ₹ 882 due 1 year hence) + (P.W. of ₹ 882 due 2 years hence)
=          882           +              882         
     ( 1 + 5 / 100)            (1 + 5 /100)2

=  882 x 20   +  882 x 400
        21                441
= ₹ 1640.